Virtual data rooms enable a more streamlined due diligence and M&A process. They allow potential investors and merger partners access to all required documentation through a secure online platform instead of having it reviewed in person or through email. They also assist companies in managing sensitive information and safeguard their intellectual property. For example life science companies are able to upload confidential revenue projections for their business, detailed financial records and IP ownership documentation to an VDR for prospective investors to look over. Furthermore, they can utilize the platform to track the interest of investors and analyze the investment decision-making times of prospective investors.

When setting up the virtual data rooms, it is crucial to take into consideration the needs of different stakeholders and their access levels. This is important as it will help you decide on the right level of document protection. For example, it’s important to think about whether you’d like setting up the virtual data rooms to allow users to download or print documents from the VDR or not. If so, ensure that the service you choose to use has tools, such as dynamic watermarking or audit logs to prevent data leaks.

Additionally, you should create folders in an order that allows users to find the files they require. This requires careful attention to name conventions for files, document categorization and ordering and standardized file formats. It is important to provide comprehensive training for users working in the VDR to ensure they are aware of the workings of the platform and the security measures that are in place.